Bad Debts Expense

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Bad Debts Expense is the operating expense account that estimates the amount of credit sales that will probably not be collectible in a given accounting period when the Allowance method is used. For the direct write-off method, this account would be the actual amount written off.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bad Debts Expense. The operating expense account that estimates the amount of credit sales that will probably not be collectible in a given accounting period when the Allowance method is used. For the direct write-off method, this account would be the actual amount written off.

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